On the acquisition trail

Towergate venture capitalist division, Cullum Capital Ventures (CCV) has completed its latest acquisition, with Liverpool–based Ajax Insurance Brokers joining the group.

Acquisition vehicle CCV was established in December 2005 with an £81m investment from HBOS’s corporate finance arm, Royal Bank of Scotland Group, and a total of £11m from Peter Cullum, Andy Homer and CCV's chief executive Tim Johnson.

CCV was launched to aquire small and medium sized regional brokers in the £3 to 10m range, offering a bespoke service for investment with the brokers maintaining their name and autonomy.

Tim Johnson, chief executive of CCV, said: “We are dealing with businesses that are often family-run and there is a lot of emotional involvement that has to be dealt with. When Towergate takes over a business it is often through advisors, and there is not usually the same level of emotional connection.”

It has made steady progress in its acquisition strategy, surpassing one launch aim when it hit £50m gross written premiums in January 2007. The Ajax buy, with a GWP of £3m, takes CCV's premium income to over £70m.

“We are dealing with businesses that are often family-run and there is a lot of emotional involvement that has to be dealt with. When Towergate takes over a business it is often through advisors, and there is not usually the same level of emotional connection.

Tim Johnson, chief executive of CCV

Targeting north of £100m GWP by the end of the year, CCV appears to be well on track to achieve its aim of £350m within 3 years.

Peter Cullum said: “Beyond Towergate Partnership, Cullum Capital Ventures has proved attractive for brokers looking for a different capital solution and keeping greater control or identity than would be the case with larger consolidators. Their ‘quasi-venture capital’ model allows more independence and continuity of identity.”

CCV made its first buy on June 29, 2006, Ware-based Moffatt Saunders insurance brokers brought with it £9m in GWP.

This was followed in August with the acquisition of Birmingham based broker Richard V Wallis.

Since then CCV has expanded rapidly with the acquisition of roughly one regional broker every month.